Although the domestic market for cigarettes in America in the l990s was greatly reduced due to bans on advertising, smoking in public places, and health warnings, American tobacco companies were showing a profit most quarters due to export sales of cigarettes and diversification of products sold including food.
Sales of cigarettes to Western Europe continued to do modestly well in spite of competition from European companies.
At the same time East European and Asian markets opened up with the fall of the Soviet Union and the lifting of trade restrictions.
Two American companies moved quickly into these markets, RJ Reynolds and particularly, Philip Morris.
Philip Morris used a strategy of buying large shares of existing cigarette manufacturing facilities in Eastern Europe and opening new plants.
Philip Morris set up operations in Czechoslovakia, Hungary, near St. Petersburg, Russia, Krakow, Poland, and Turkey.
In each case, Philip Morris negotiated to primarily manufacture it's popular Marlboro brand along wit local brands.
In Asia, Philip Morris opened a plant in Kazakhstan with an eye to opening in Japan, Taiwan, Korea, Thailand, and particularly China, the biggest world market, as trade restrictions are lifted.
Argentina and Brazil are also major markets.
Overall, volume of production of cigarettes rose during the time of reduced consumption in the US.
In October 1994, Philip Morris claimed to have sold 201 billion cigarettes, an increase of 18% over previous sales.
Most quarters showed earning gains, in spite of a $.40 price drop to American consumers per pack of Marlboros.
